8. Flashcards
What is Stakeholder Theory?
Has both an ethical and managerial branch and is effectively an umbrella term representing a number of alternative theories that address various issues associated with an organisation’s relationship with its stakeholders.
What is Institutional Theory?
A theory that explains how various practices, processes and organisational forms become similar or ‘institutionalised’ within society. Explains that organisations within particular ‘institutional environments’ will become similar because of various coercive, normative and mimetic pressures. This process of becoming similar is referred to as isomorphism. The theory also predicts that there will be a decoupling of formal (seen) structures or forms and actual structures or forms.
What is Systems-oriented theories?
Also referred to as open systems theories, these are theories that perceive of an organisation as being part of a broader social system in which the organisation is influenced by, as well as influences, the society in which it operates.
What is Classical Political Economy Theory?
A theory which explicitly places sectional (class) interests, structural conflict, inequity, and the role of the State at the heart of the analysis to influence various decisions.
What is Bourgeois Political Economy Theory?
A theory which ignores various tensions within society and accepts the world as essentially pluralistic with no particular class dominating another.
What is Normative isomorphism?
Relates to the pressures arising from group norms to adopt particular institutional practices.
What is Legitimacy Theory?
A theory that proposes that organisations need to operate within the bounds and norms of their respective societies. Compliance with societal norms and expectations is assigned the status of ‘legitimacy’. If ‘legitimacy’ is not apparent then managers will embrace the process of legitimation.
What is Social contract?
It is an implied contract representing the norms and expectations of the community in which an organisation operates.
Isomorphism A constraining process that forces one unit in a population to resemble other units that face the same set of environmental conditions.
What is Decoupling?
Refers to the situation in which the formal organisational structure or practice is separate and distinct from actual organisational practice.
What is Mimetic isomorphism?
Involves organisations seeking to emulate (perhaps copy) or improve upon the institutional practices of other organisations; often for reasons of competitive advantage in terms of legitimacy.
What is Coercive isomorphism?
Arises where organisations change their practices to conform to accepted institutional practices because of pressure from those stakeholders upon whom the organisation is dependent.
What is Isomorphism?
A constraining process that forces one unit in a population to resemble other units that face the same set of environmental conditions.
What are the 9 factors which are influence and are influenced by the organisation?
Interest groups Investors The public Suppliers Government Media Consumers Industry bodies Employees
Are systems-orientated theories positive or normative?
Positive
What is the difference between accountability and legitimacy?
Legitimacy is motivated by profitability and survival
